Stocks record best stretch of year, as inflation fears recede
The stock market has notched the year’s best stretch of gains, as investors take comfort from early signals that inflation is slowing and the economy is holding up. The S&P 500 rose 1.7% on Friday, taking its rise for the week to 3.3% and marking its fourth consecutive positive week. The rally stands in stark contrast with the first half of the year, when Wall Street suffered its worst start in a half-century, as the war in Ukraine, soaring energy costs, rising interest rates and rapid inflation galvanized investors’ fears about the health of the economy.
Peloton will slash jobs and raise prices in turnaround effort
Peloton plans to raise the price of some products, eliminate its North American warehouses, close stores and slash jobs as part of a cost-cutting strategy, the company said Friday. The maker of stationary bikes, which found runaway success during the pandemic only to struggle with excess inventory as people headed back to gyms, will cut roughly 784 jobs by reducing its retail footprint and ending its last-mile delivery network, relying on partners instead, it said in a statement. It did not say how many of its 86 stores in North America it would close.
Amazon’s Ring, MGM to launch show from viral doorbell videos
Amazon-owned companies Ring and Hollywood studio MGM are partnering to create a TV show in the mold of “America’s Funniest Home Videos.” MGM says the half-hour “Ring Nation” program will showcase viral footage from Ring’s doorbell and smart-home cameras. The series is the latest example of Amazon’s fusion of its various business arms. It also presents a branding and marketing opportunity for Amazon, which bought Ring in 2018. Since then, the company has dealt with rounds of privacy concerns around Ring and its relationship with police departments across the country. The show will be hosted by comedian Wanda Sykes and premier in syndication on September 26.
Russia’s economy contracts sharply as war and sanctions take hold
The Russian economy contracted steeply in the second quarter as the country felt the brunt of the economic consequences of its war in Ukraine, in what experts believe to be the start of a yearslong downturn. The economy shrank 4% from April through June compared with a year ago, the Russian statistics agency said Friday. It is the first quarterly gross domestic product report to fully capture the change in the economy since the invasion of Ukraine. It was a sharp reversal from the first quarter, when the economy rose 3.5%.
McDonald’s will reopen in some parts of Ukraine
McDonald’s will begin reopening its restaurants in Kyiv and western Ukraine, the company said Thursday, in response to what it called the “strong desire” of many employees to return to their jobs despite the war with Russia. After Russia invaded Ukraine in February, McDonald’s closed its 109 restaurants there. Paul Pomroy, a vice president for international operations at McDonald’s, said the decision to begin a phased reopening of restaurants would “support the local economy and the Ukrainian people.” It was made after discussions with Ukrainian officials, suppliers and security specialists, he said.
Japan ekes out growth as consumers splurge amid COVID surge
Japan’s economy grew at an annual rate of 2.2% for the April-June quarter from the previous quarter, as consumer spending rebounded with COVID-19 restrictions getting gradually lifted. Japan’s gross domestic product, or GDP, the sum of the value of a nation’s products and services, expanded 0.5% from January-March, during which the economy had stayed flat, according to preliminary government estimates released Monday. Economists had forecast 0.6% on-quarter growth. The annual numbers show how the economy would have grown if the quarterly rate were to continue for a year. Private consumption jumped at an annual rate of 4.6%.
High oil prices help Saudi Aramco earn $88B in first half
Saudi oil company Aramco’s half-year profits peaked just shy of $88 billion as oil prices remain high globally. The oil and gas company, which is nearly entirely state-owned, said Sunday it also saw a 90% surge in net profits for the second quarter of 2022 compared to the same time last year. Aramco said the results set a new quarterly earnings record for the company since it floated around 5% of the company on the Saudi stock market in late 2019. Aramco said the profits were driven primarily by higher crude oil prices and volumes sold, and higher refining margins.
By wire sources